Suppose you have:
A = 'a b c';
Possibly obtained by:
A = get(handles.myTextEdit,'String');
Then to get each character (including spaces) separately, you can use:
>> B = num2cell(A)
B =
'a' ' ' 'b' ' ' 'c'
Or if you want to only get the actual letters, i.e. split on the space character, you could use REGEXP:
>> C = regexp(A,' ','split')
C =
'a' 'b' 'c'